Casino talks aimed to meet Pawlowksi's concerns

Mayor says Aztar has proven record in other cities.

March 07, 2006|By Scott Kraus Of The Morning Call

The president and general manager of Casino Aztar in Evansville, Ind., noticed a subtle change in Allentown Mayor Ed Pawlowskis attitude toward a local casino proposal after a Feb. 17 fact-finding visit.

Pawlowski seemed to go from someone truly conflicted about whether he could support Aztar Corp.s Lehigh Valley Tropicana proposal, said James L. Brown, to someone who could see how the casino might benefit the city.

He was able to meet with [Evansville] city and community officials to hear their story firsthand, Brown said. He didnt have to take anybodys word for it.

Pawlowski talked with current and former mayors, police chiefs, city council members and community leaders during his daylong trip. He asked questions about gambling addiction, personal bankruptcies, the effects of the casino on crime.

In the two weeks that followed, talks were aimed at addressing Pawlowskis concerns about the societal impacts of gambling, public safety and wages, at a price Aztar could afford.

The deal was sealed Friday, after a frenzied, two-day back-and-forth between Aztar officials and Pawlowski, who was vacationing in Puerto Rico and communicating daily with casino executives through his assistant Bar Johnston and city attorneys via cell phone.

Pawlowski said he made up his mind while on vacation.

It really was the last couple of days that we have really sort of hammered out this agreement, a tanned and relaxed-looking Pawlowski said Monday afternoon.

In exchange for Pawlowskis support  seen as key to the companys bid to secure a state gaming license  Aztar has made a written agreement to pay the city $1.25 million to buy a ladder truck and ambulance and open a police substation on the citys east side.

It also has agreed to set aside $500,000 over five years to treat gambling addictions, and $250,000 to help its employees buy homes in Allentown. The company also has agreed to hire union labor to build the proposed casino and allow UNITE HERE to unionize its casino resort workers  should Aztar prevail in the intense competition for one of two stand-alone licenses available statewide.

Plus, under state law, Aztar would have to pay the city at least $10 million a year in host fees  a huge financial boost to a city that has run three straight years of deficits and is looking at a $7 million revenue shortfall in 2007, and no obvious way to plug it.

With the written agreements in place, Pawlowski lent his formal support to the plan Monday, surrounded by the citys fire and police chiefs, Aztar officials, City Council President David M. Howells Sr. and Councilman Michael DAmore.

I have confidence in my negotiations with Aztar because they have proven themselves in other cities to be a good corporate citizen, Pawlowski said.

Howells, who said he does not gamble, has been a supporter of the proposal for longer than Pawlowski because of the potential benefits to the city. He said he hopes his gentle prodding helped convince the mayor to eventually come out in favor of the plan.

I didnt have to go to Puerto Rico to make up my mind, Howells said.

Howells said he will introduce a resolution of support at City Councils next meeting on March 15, and is hoping for a 7-0 vote.

As Bethlehem competitor Las Vegas Sands promoted its efforts for a slots casino complex, Aztar ran a grass-roots campaign in Allentown. Brown said Aztar approached community groups and leaders with its plans, asking about their concerns and building a group of respected supporters in the community.

Among them were people such as restaurateur Louie Belletieri and former City Councilman Tom Burke.

Also last month in Allentown, Aztar hosted an invitation-only party for 350 customers of the Tropicana Resort and Casino in Atlantic City, mostly from Lehigh and Northampton counties, to talk about how the proposed Lehigh Valley Tropicana would help boost the Allentown economy.

Aztar, of Phoenix, is competing with Las Vegas Sands for the one gaming license that could come to the Lehigh Valley. Sands has proposed a $879 million slots casino complex on former Bethlehem Steel property. Bethlehem Mayor John Callahan has been a strong supporter of that proposal.

Lehigh Valley Tropicanas first phase would include 3,000 slot machines, 250 hotel rooms, a conference center and a dozen restaurants and lounges in the style of the companys The Quarter entertainment complex in Atlantic City.

It would be next to a proposed 7,000-seat minor league baseball stadium, expected to open in spring 2008. The state Gaming Control Board is expected to award the slots licenses late this year. There are two stand-alone licenses available statewide. In Monroe County, two companies also are competing for licenses.